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PPP "Ferrocarril Central” Railway Project ESRS URUGUAY

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PPP PPP "Ferrocarril Central” Railway Project ESRS URUGUAY Original language of the document: Spanish 1. Overview and Scope of IDB Invest's Environmental and Social Review The PPP “Ferrocarril Central” Railway Project (hereinafter, “FFCC” or “The Project”) includes the design, construction, funding, refurbishment and maintenance of a 273-kilometer (km) railroad between the cities of Montevideo and Paso de los Toros, Uruguay. The Project's starting point is the New Passenger Terminal in Montevideo, and its endpoint is the Paso de los Toros station. The supply, testing and commissioning of the rolling stock are not included in the Project. The proponent of the Project is the Ministry of Transportation and Public Works (MTOP, for its acronym in Spanish). This agency has arranged for an environmental impact assessment (EIA) of the Project to be performed prior to it obtaining the Environmental Permit granted by the National Directorate of the Environment (DINAMA, for its acronym in Spanish), a body of the Ministry of Housing, Land Planning and Environment (MOTVMA, for its acronym in Spanish). Major sub-projects and facilities, such as bridges, trenches, quarries, workplaces, and intersections at different road levels will require specific environmental assessments to be approved by the DINAMA. The Grupo Vía Central Consortium (hereinafter "the Consortium"), which comprises the companies NGE (France), Sacyr (Spain), Berkes (Uruguay) and SACEEM (Uruguay), has been awarded the international public tender for the construction and maintenance of the new railroad, under a PPP (Public-Private Partnership) contract. The railway infrastructure to be built or improved through the Project will be designed in accordance with the technical specifications of the European Community. The railroad will transport cellulose pulp, wood, grains, containers, fuel, and chemical products, among other cargo. It is estimated that the railroad will transport 8 million tons of gross cargo (including 4 million tons of pulp) per year, when it operates continuously 365 days a year. Fifteen freight trains with a maximum length of 800 meters will run daily in each direction on the railroad, as well as 9 passenger trains in each direction, which will connect Montevideo with the locality of 25 de Agosto. The trains will run at a maximum speed of 60 kilometers per hour (km/h) between Montevideo and Las Piedras, and 80 km/h between Las Piedras and Paso de los Toros. The cargo capacity will increase from the current 18 ton axle load (ton/axle) to 22.5 ton/axle. The main works to be funded include: i) change of tracks, crossties and renovation of existing civil structures (such as slopes, bridges, culverts, etc.); ii) improvements in the geometry of the track layout involving the construction of detours to population centers (Santa Lucia, Independencia, Cardal, Sarandí Grande and Puntas de Maciel); iii) trench crossing works in the towns of Capurro/Uruguayana and Las Piedras, to avoid cross-track crossings; iv) new double track for passenger transportation between the towns of Sayago and Progreso; v) track renewal between Sayago and Estación Peñarol; vi) new signaling and traffic control system, including an automatic p.2 protection system for trains and interfaces with connecting tracks; vii) construction, reconstruction or reinforcement of bridges; viii) the tunneling of roads and highways; ix) the installation of acoustic screens in noise-sensitive sites; and x) the fencing of the railway strip along the entire route. The project will include the improvement of stations and passenger transport service between Montevideo and Progreso and the construction of 32.5 km of new maintenance access roads. However, due to corrections in the layout and detours of population centers, it will also imply the expropriation of 642 registers, as well as the demolition and involuntary displacement of 40 homes and various facilities. The estimated period for the construction of the Project is 33 months. For this purpose, four simultaneous and approximately equidistant construction fronts will be implemented, which will include three main works (located in Florida, Durazno and Montevideo) and two secondary works (in Paso de los Toros and in Progreso). The rails will be stored in the 29-hectare main worksite located in Florida, and the crosstie factory, machinery and equipment maintenance area, ballast stockpiling, laboratories, offices and dining areas, dressing rooms, toilets, etc. will be installed there as well. The stockpiling of the disassembled rails will be carried out in specific sites near the localities of Paso de los Toros, Durazno, Sarandí Grande, Florida and Progreso1. The Project will require the installation of four concrete plants with a capacity of 60 cubic meters per hour (m3/h), which will be located in the outskirts of Montevideo, and in the towns of 25 de Mayo, Durazno and Centenario; and of two main quarries located in Pintado and Centenario. However, the materials for the sub-base will be obtained from several quarries located along the track. The Environmental and Social due Diligence (ESDD) visit for this Project took place between February 4 and 8, 2019. During this visit, the most relevant sites (possible work fronts and places inhabited by the potentially affected population) were inspected, covering the route from Montevideo to Paso de los Toros, and meetings were held with representatives of the Consortium, the authorities (MTOP, DINAMA, Office of the Ombudsman in the Municipality of Montevideo), the most relevant Non-Governmental Organizations (NGOs) and Commercial Organizations (COs), as well as with members of the communities that could be affected by the Project, both during its construction and operation phases2. 2. Environmental and Social Classification and Rationale In accordance with the provisions of IDB Invest’s Environmental and Social Sustainability Policy, the Project has been classified as a Category A operation, given that during its construction phase it may result in the involuntary resettlement of people due to land expropriation and the displacement of people who built their home on the railroad's easement strip; interference with pedestrian and 1 The materials recovered from the disassembled railway between Montevideo and Paso de los Toros (rails and sleepers) as well as the existing new rails laid down in the track area will be transferred to the Line to Rio Branco to be laid down from km 26 (Toledo) to 334 (Treinta y Tres), and other destinations. 2 The cumulative possible environmental and social impacts on the natural and anthropic components of the environment considered relevant to the railway project are the subject of a Cumulative Impact Assessment requested by IDB Invest to the GVC Consortium. p.3 vehicular traffic caused by the works and the resulting increase in the probability of road accidents; impacts on air quality due to particulate matter emissions; the generation of vibrations; noise emissions; and possible impacts on water, soil and biodiversity due to pollution events related to accidental chemical spills during the construction processes. The Project will activate the following International Finance Corporation (IFC) Performance Standards (PS): PS1 Assessment and Management of Environmental and Social Risks and Impacts; PS2 Labor and Working Conditions; PS3 Resource Efficiency and Pollution Prevention; PS4 Community Health, Safety, and Security; PS5 Land Acquisition and Involuntary Resettlement; PS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources; and PS8 Cultural Heritage. 3. Environmental and Social Context The railway line, with a clear S-N orientation, crosses mostly rural areas, and specifically district capitals (Canelones, Florida, Durazno) and some localities (La Paz, Las Piedras, Progreso, Sarandí Grande, Santa Lucía, Carlos Reyles, among others), in many sections following the geometry of Route 5 that joins Montevideo with Paso de los Toros. The suburbs of Montevideo and the district of Canelones are located in the southern area of the railway line. These areas are the most anthropized, with large sections destined to rain-fed and irrigated agriculture, and lands destined to horticulture and fruit production. At the limit between the Canelones - Florida districts, the railway crosses the Santa Lucía River, which belongs to the basin of the De la Plata River and its Maritime Front. The area associated with the central part of the railway has less farmland and more land dedicated to livestock grazing and dairy farms. To the north, in the Río Negro basin, extensive livestock farming predominates. In general, the area adjacent to the railway presents low biological diversity, with a predominance of extensive natural meadows with some rocky outcrops and gently undulating topography. The maximum elevations are less than 150 meters above mean sea level (masl) and are located in the area of Cuchilla Grande, near the towns of Sarandí Grande, Goñi in Florida, and Villasboas in Durazno. The Protected Area with Managed Resources of the Santa Lucía Wetlands (1 km) and the Protected Landscape Rock Art Area of Chamangá (7 km) are within the Project's area of influence. 4. Environmental Risks and Impacts and Proposed Mitigation and Compensation Measures 4.1 Assessment and Management of Environmental and Social Risks and Impacts 4.1.a Environmental and Social Management System The Consortium has adopted the company SACEEM’s comprehensive environmental, social, health, safety, and security
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